CALGARY,
AB, July 10, 2023 /PRNewswire/ - Vermilion
Energy Inc. ("Vermilion", "We", "Our", or the "Company") (TSX: VET)
(NYSE: VET) is pleased to announce that the Toronto Stock
Exchange ("TSX") has approved the notice of Vermilion's intention
to commence a normal course issuer bid ("NCIB") through the
facilities of the Toronto Stock Exchange ("TSX"), New York Stock
Exchange and other alternative trading platforms in Canada and USA.
The NCIB allows Vermilion to purchase up to 16,308,587 common
shares, representing approximately 10% of its public float as at
June 28, 2023, over a twelve month
period commencing on July 12, 2023.
The NCIB will expire no later than July 11,
2024. The total number of common shares Vermilion is
permitted to purchase on the TSX is subject to a daily purchase
limit of 297,362 common shares, representing 25% of the average
daily trading volume of 1,189,450 common shares on the TSX
calculated for the six-month period ended June 30, 2023; however, Vermilion may make one
block purchase per calendar week which exceeds the daily repurchase
restrictions. Any common shares that are purchased under the NCIB
will be cancelled upon their purchase by Vermilion.
In connection with the NCIB, Vermilion will enter an automatic
purchase plan ("ASPP") with its designated broker to allow for
purchases of its common shares during self-imposed blackout
periods. Such purchases would be at the discretion of the broker
based on parameters provided by the Company prior to any
self-imposed blackout period or any period when it is in possession
of material undisclosed information. The ASPP has been pre-cleared,
as required by the TSX. Outside of these blackout periods, common
shares may be purchased under the NCIB in accordance with
Management's discretion.
Vermilion has a long history of returning capital to its
shareholders as we have paid out over $40 per share in dividends since 2003. Our
primary focus over the past three years has been on debt reduction
with the intention of increasing shareholder returns as debt levels
decreased. In Q3 2022 we implemented an NCIB and repurchased an
aggregate 5,356,723 common shares at a weighted average price of
$23.51 per share under this plan to
June 28, 2023. These repurchases were
all made in open market transactions. The Company anticipates
returning 25% to 30% of free cash flow(1) to
shareholders in 2023, depending on commodity prices, primarily
through the base dividend and share repurchases. The majority of
free cash flow will continue to be allocated to debt reduction
until we achieve our $1 billion net debt target, after which
we plan to increase our return of capital to shareholders. Share
buybacks continue to screen as one of the most compelling options
for returning capital to shareholders as we believe our common
shares are trading at a price that does not reflect the appropriate
value of the company.
(1) Free cash flow is a
non-GAAP financial measure most directly comparable to cash flows
from operating activities; it does not have a standardized meaning
under IFRS and therefore may not be comparable to similar measures
presented by other issuers. Free cash flow is comprised of fund
flows from operations less drilling and development costs and
exploration and evaluation costs. The measure is used to determine
the funding available for investing and financing activities
including payment of dividends, repayment of long-term debt,
reallocation into existing business units and deployment into new
ventures.
About Vermilion
Vermilion is an international energy producer that seeks to
create value through the acquisition, exploration, development and
optimization of producing assets in North
America, Europe and
Australia. Our business model
emphasizes free cash flow generation and returning capital to
investors when economically warranted, augmented by value-adding
acquisitions. Vermilion's operations are focused on the
exploitation of light oil and liquids-rich natural gas conventional
and unconventional resource plays in North America and the exploration and
development of conventional natural gas and oil opportunities in
Europe and Australia.
Vermilion's priorities are health and safety, the environment,
and profitability, in that order. Nothing is more important to
us than the safety of the public and those who work with us, and
the protection of our natural surroundings. We have been
recognized by leading ESG rating agencies for our transparency on
and management of key environmental, social and governance issues.
In addition, we emphasize strategic community investment in each of
our operating areas.
Vermilion trades on the Toronto Stock Exchange and the New York
Stock Exchange under the symbol VET.
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SOURCE Vermilion Energy Inc.
